Spot gold trading teaching: how to calculate the spread fee?

In the current financial market, spot gold trading can be said to be the most commonly used financial management method. Especially after a number of major international risk events broke out recently, the market risk aversion was once ignited, stimulating the rise of gold prices. However, we need to pay a certain spread fee for buying and selling spot gold, so how is this fee calculated? Today, the editor will tell you about the teaching content of this spot gold trading:

1. Calculation method of spot gold spread

In the teaching of spot gold trading, how is the spread fee calculated? In fact, in the international gold market, there is a set of spread calculation methods. The formula is: spread fee = transaction lot × spread standard × contract unit. For example, according to the spread standard of 0.5 in the international market, if we buy and sell 1 lot of spot gold, the spread fee that needs to be paid is 1 lot × 0.5 × 100 ounce contract unit = 50 US dollars, and two lots are 100 US dollars, and 3 lots are $150...and so on.

In other words, as the number of transactions and the frequency of transactions continue to increase, our spread costs will continue to accumulate. If the spread fee increases too fast, it will easily affect our investment rate of return and greatly reduce the profit at hand.

2. How to reduce the spread expenses?

Through the teaching of spot gold trading, although we know that the spread fee will continue to accumulate, in fact, investors can reduce or even eliminate the spread fee as long as they adopt corresponding investment methods. For example, in trading, we should consciously control the frequency of transactions, only enter the market when the market is big, avoid entering the market during the dull period of the market, and reduce unnecessary spread costs.

In addition, using Datian Global Micro Spread to place an order can also allow us to trade with a spread that is far lower than the market standard, so that the investment funds can be more fully utilized, and the profit at hand can be increased invisibly.

So in general, in the teaching of spot gold trading, how is the spread fee calculated? Generally speaking, the amount of the spread fee mainly depends on the investor's trading lot and the platform's spread standard. If we can flexibly use the micro-spread account with an average spread fee as low as 15 USD/lot to make orders, we can greatly reduce the cost of investment and increase the profit in hand.